## How much actually the government spent on fuel subsidy??

I love it when the government start talking in numbers. This is because, Maths never lie. Take a look at  the figures quoted below in bold.

Yes, we export crude petroleum, says the president and chief executive officer of Petronas, Tan Sri Hassan Marican. In 2007, Malaysia extracted about 600,000 barrels per day, of which 339,000 barrels per day were refined here. The remainder was exported unprocessed, making us a net exporter of crude.

On the other hand, notes Minister for Domestic Trade and Consumer Affairs Datuk Shahrir Samad, Malaysia is a net importer of refined petrol.

We produced 110,000 barrels of refined petrol per day last year but the demand was 190,000 barrels per day.

The balance had to be imported – 29 million barrels for the whole year.

At RM43 billion last year, Shahrir notes, fuel subsidies consumed about a quarter of the RM164 billion operating and development expenditure.

(Source: NST)

Let us do some number crunching.

1 barrel = 159 litres (Read here)

190,000 barrels per day = 30,210,000 litres per day

1 year = 30,210,000 x 365 = 11,026,650,000 litres

Subsidy in 2007 (last year) = RM0.19 per litre, (quoted from table)

So total subsidy = 11,026,650,000 x RM0.19 = RM2,095,063,500

= RM2 billion??

Hmm.. probably petrol subsidy and diesel subsidy should be added together.

Subsidy in 2007 RM0.19 + RM0.43 = 0.62 per litre,

So total subsidy = 11,026,650,000 x RM0.62 = RM6,836,523,000

= RM6 billion??

Using the numbers given by Shahrir Samad, I can’t get RM43 billion fuel subsidies from all the calculation I did!! WHY? I probably sucks at Maths. Can you help me here? How to get at RM43 billion? Find, get me RM35B. Oh,  I think RM30B is enough. Please? I need to go to sleep now..

ps: I actually made a mistake of using 190,000 barrels per day demand to calculate the subsidy, when I probably should use the 29 millions barrels per year that need to be imported for calculation. Well, why the government need to subsidise what we can produce locally right? Then the subsidy for fuel is just 29 millions x 159 litres x RM0.62 = RM2 billion. This is not making any F sense!

pss: I will be glad if somebody points out I made a mistake in my calculation. Please. Then we will know where the rest of the billions went to..

pss: You probably want to read The Truth About Fuel Subsidy and What Is Never Mentioned In  Mainstream Media as well.

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## 7 Responses to “How much actually the government spent on fuel subsidy??”

1. NoktahHitam wrote on Jun 26, 2008 at 3:01 am

Bong you beat me to this! I was looking for the figure before this but never found any. Cilakak ko. Takpe, ko teruskan usahe membaham pak lah, aku suke!

at RM2B all this while? F! Tak bole ni, I think mesti something we left out.

…. dah la, aku malas try kemak nye gov. tipu duit rakyat.

2. melbie wrote on Jun 26, 2008 at 8:15 am

The rich are getting richer and poor getting poorer… no wonder! Change our lifestyle indeed… pfffft…!!! :vangry:

3. bongkersz wrote on Jun 26, 2008 at 9:25 am

I would be happy if I know what we left out.. even if I use the highest amount quoted in the chart and estimated domestic demand i still get:

Highest subsidy given: RM0.55 + RM0.92 = RM1.47 (year 2008)
Highest amount of fuel consumption quoted for domestic use: 400,000 barrels per day (it is quoted everywhere we use this much of ‘crude oil’, where refined oil only about 46% from a barrel of crude oil = 75 litres, but nevermind we stick to 400,000)

Total subsidy = 400,000 x 159 x 365 x RM1.47 = RM35B??

Now we get RM35B. But, how much of fuel actually we use? It just doesn’t make sense if we need to subsidise what what we can produce right? We ONLY subsidise what we IMPORT, no??

The more you calculate the more headache. Only Pak Lah can do this calculation.. or 4th floor boys? 😀

Hmmm… wait, I think I made a boo boo.. The chart only for Petrol RON97 (Super) and Diesel, we haven’t calculate for Petrol RON92(Regular) and LPG??

Too many charts flying around. See this

Compare it with the chart given by Petronas which was published in NST above. WTF..

I give up.

ps: the only thing i can think of is.. the figure given by Shahrir is totally off..

Updated: Did some googling, oil consumption is around 515,000 barrels per day.

From Malaysiakini

Can Petronas reduce Malaysian petrol prices on its own? The answer is negative. Petronas’ current total refining capacity is only 314,000 barrels of crude per day. From this amount, only about 150,000 barrels per day of petrol and diesel can be produced, the rest being LPG, petrochemical naphtha, kerosene/jet fuel and waxy residues.

The 150,000 barrels per day account for only 40% of the amount of petrol and diesel sold in Malaysia. The other 60% is supplied by foreign oil companies like Esso, Shell and Caltex.

So this 60% supplied by foreign oil companies = (150,000/40)x60 = 225,000 barrels per day = 35.775 million litres per day = 13 billion litres per year

Subsidy = 13B litres x 1.47 = RM 19 billion.. er… give up!!!!!!!!!!!!!!!!!!!!

4. wawa440khz wrote on Jun 26, 2008 at 7:05 pm

yes we have to change our lifestyle because sometimes I think subsidy thing would not help nation to progress..like giving “Hak Keistimewaan” for Bumiputera doesn’t help them to imporve..agree??
but more critical thing is, we should change our government because we are leads by those who are used to enjoy “subsidy(hak keistimewaan”….

5. stalker wrote on Jun 26, 2008 at 7:38 pm

hak keistimewaan for bumiputera help me a lot~

6. bongkersz wrote on Jun 27, 2008 at 1:28 pm

it’s a privilege, not a right, so one day when they self sufficient they should know better to keep using it as tongkat.